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Cost-cutting ideas by SABC may include retrenchments

The loss-making SABC is looking to cut hundreds of jobs as it continues to face liquidity problems.

The broadcaster, which recorded yet another staggering loss of R622m in the financial year ended March, has very high operating costs and spends about R3bn a year to pay the salaries of just more than 3,000 employees.

SABC spokesperson Neo Momodu said on Friday that management had met organised labour to inform them that the organisation contemplated implementing section 189 of the Labour Relations Act.

"This forms part of the cost-cutting measures, which include the assessment of key cost drivers, in order to make the organisation financially sustainable and fit for purpose," she said.

"The SABC CEO, Madoda Mxakwe, addressed staff on September 14 and communicated the dire financial state that the SABC finds itself in. He explained that the SABC had a demanding financial year with total revenue of R6.6bn against a budget of R7.3bn resulting in an underperformance of R709m.

"One of the SABC’s biggest cost drivers is the salary bill. To put this into context, the SABC is a R7.2bn revenue generating company with a salary bill of R3.1bn. The current ratio of venue to wage bill is not sustainable, given the SABC’s dismal financial situation. It is for this reason that the SABC is contemplating other cost-cutting measures to further reduce costs," Momodu said.

"The next step is for the SABC to engage in joint consensus seeking consultations with organised labour," she added.